First HoldCo commits to dividend payment despite forbearance

First HoldCo commits to dividend payment despite forbearance

First HoldCo has committed to paying a dividend in the 2025 financial year and beyond despite its forbearance exposure.

This was disclosed in a statement by the lender on Thursday, in a statement filed on the platform of the Nigerian Exchange Limited.

First HoldCo is one of the banks impacted by the directive of the Central Bank of Nigeria, which froze dividend payment, bonuses, and investments in foreign subsidiaries for lenders operating under regulatory forbearance.

In the statement, First HoldCo clarified that, “The SOL breach of our primary subsidiary, First Bank of Nigeria Ltd (“FirstBank” or “the Bank”), is related to two customers with foreign currency loans arising from over 200 per cent currency devaluation in 2023/2024. With the planned completion of the capital raise in the second half of 2025, among other measures, the bank will cure the breach in this regard.

“Furthermore, the Bank’s forborne loans are in respect of syndicated facilities that are industry exposures. The consortium of lenders is working to re-tenor the facilities to align with their cashflows as all the assets are back to active production and generating appreciable revenue. Some also have receivables that are awaiting payment from relevant agencies of government. Syndicate lenders will ensure the processes are concluded within the current financial year.

“Any loan not fully re-tenored will be fully provisioned and exit forbearance. As a well-diversified financial holding Company, FirstHoldCo will sustain its dividend payments in 2025 and beyond as we remain committed to our esteemed stakeholders.”

The lender added that due to its diversified financial holding Company, it will sustain its dividend payments in 2025 and beyond.